I am trying to get an "out of the box" way of using this tax deferment. I own a home and am looking to move into something better. I have gained substantial equity but don't want to pay capital gains and have been in the home for a short time (about a year). I live in CA and know I have to be in the home a lot longer before I can sell without getting a huge hit on my equity. I thought about renting but would barely make the mortgage, which doesn't seem smart to me. I thought about opening an LLC and having it "own the property" and rent it to me then try that but I want to hear from others what they have done for this.
If you can wait another year, look into Internal Revenue Code Section 121 - exclude the gain from sale of your principal residence under certain circumstances. If there's a big enough dollar value, you can also look into investing in the brand new "opportunity zones" but you wouldn't live there.
*This post does not create an attorney-client nor a CPA-client relationship. Readers are advised to seek professional advice.